PPA offers privatization of Iloilo Port at P5.9B

1 of 2

By Rjay Zuriaga Castor

The Philippine Ports Authority (PPA) is bidding out the proposed development plan and privatization of the terminal leasing of the Iloilo Commercial Port Complex (ICPC) in Iloilo City at P5.87-billion.

During a public consultation on June 21, PPA noted that capital outlay projects would account for P4.61 billion out of the overall projected cost, while major equipment expenses would amount to P1.26 billion.

The winning bidder will take care of the operations, management, landside, and waterside improvement and expansion, among others.

PPA Commercial Services Department manager Mark Jon Palomar said that aside from the operations and maintenance, the plan also calls for turning ICPC into an exclusively international port and decongesting the main gateway in Manila.

Once ICPC is developed into an international port, PPA said shippers can ship directly to the port from the port of origin, bypassing the need to go through Manila or Cebu ports initially and reducing transshipment expenses.

PPA Port Management Office (PMO)-Panay/Guimaras, which has jurisdiction over ICPC, has introduced the development plan, minimum equipment requirement, and anticipated key performance indicators (KPI) as components of the terms of reference (TOR) for the bidding process of the ICPC port terminal management contract. This bidding falls within the framework of PPA’s port terminal management regulatory framework (PTMRF).

The ICPC, classified as Tier 1, will be the first Tier 1 port to be subjected to bidding under the PTMRF. Tier 1 covers a concession period of 25 years.

PPA noted that ICPC, as a Tier 1 port, necessitates the potential concessionaire such as building landside infrastructure, installing information technology systems, and deploying advanced equipment and machinery to efficiently handle and operate cargo-related services at the port.

PMO Panay/Guimaras said ICPC lacks modern equipment, which “prevents cargo owners from shipping directly to and from Iloilo and international origins, and from avoiding multiple and expensive handling of their containers.”

PMO Panay/Guimaras added that the port ICPC has not served international shipping lines or dealt with international containerized cargo, “making it a severely underutilized investment.”

However, it noted that ICPC has the potential in expanding its berths and yard space, particularly with its current infrastructure consisting of three berths spanning 627.9 meters and covering an area of 23 hectares.

Proposed Tier 1 rates which are higher than current rates in ICPC were also presented. The proposed tariff for Tier 1 ports will be subject to evaluation by the PPA technical working group and will require approval from the PPA board of directors.

After the public consultation on June 21, stakeholders have a five-day window to submit their position papers to the PPA regarding the proposed development of ICPC and the tariffs for Tier 1 ports.

It can be recalled that in early January this year, PPA hopes to bid out ICPC “ideally” before the end of June or within the year.

Source: https://www.portcalls.com/ppa-rolls-out-proposed-p5-9b-plan-for-iloilo-port-complex/